Paul Johnson The Singapore High Court has approved the WazirX restructuring plan following the $234 million hack, paving the way for repayments to over 150,000 users and a revival of the exchange’s operations.
WazirX Restructuring Gains Singapore Court Approval After $234 Million Hack
The long wait for WazirX users is finally nearing an end. The Singapore High Court has officially approved the WazirX restructuring plan, unlocking the exchange’s next phase of recovery after last year’s massive $234 million hack. This landmark decision sets the stage for compensating over 150,000 affected users and reopening trading on one of India’s most prominent crypto exchanges.
The approval represents a critical breakthrough for WazirX, which has spent more than a year entangled in legal and regulatory challenges since the breach. For users who have had their assets frozen since mid-2024, the ruling offers a long-awaited path to financial restitution and renewed trust in the exchange’s future.
WazirX Restructuring Plan Clears Legal Roadblocks
The WazirX restructuring plan was first introduced earlier this year as a comprehensive framework to compensate victims of the July 2024 hack. The exchange had suffered a $234 million loss from a Safe Multisig wallet exploit, which cybersecurity experts later traced to the notorious Lazarus Group, a North Korean state-sponsored hacking outfit.
Initially, the restructuring plan faced setbacks when the Singapore High Court withheld approval due to concerns about how recovery tokens would be regulated under Singapore’s evolving digital asset framework. However, after months of revisions and creditor consultations, the latest proposal gained overwhelming support from both creditors and the court.
Founder Nischal Shetty expressed gratitude on social media, thanking users and partners for their resilience through a year marked by uncertainty and disruption. His statement underscored the emotional and financial weight carried by the WazirX community throughout this crisis.
User Repayments and Exchange Revival Underway
With the WazirX restructuring plan now approved, the exchange is preparing to reinitiate operations and distribute recovery tokens designed to reimburse affected users. According to the court filing, this will be executed in multiple phases to ensure security, transparency, and compliance with local financial laws.
In a recent update, Shetty noted that users could begin receiving their funds within ten days after the restructuring scheme becomes effective. However, experts from Kroll, the restructuring firm assisting WazirX, have cautioned that full repayment may take up to three months.
Despite the uncertainty surrounding repayment timelines, the overall sentiment among users and industry observers has shifted toward optimism. The court’s endorsement not only revives WazirX’s operations but also reaffirms Singapore’s position as a fair and progressive jurisdiction for crypto-related legal resolutions.
WazirX Looks to Rebuild Trust After $234 Million Hack
The WazirX restructuring plan is more than a financial lifeline it represents a chance for the exchange to rebuild its credibility in the global crypto market. The 2024 hack had severely damaged user confidence and cast doubts over WazirX’s internal security framework.
Following the breach, the exchange paused withdrawals and halted trading, triggering widespread frustration among its community. The team has since implemented enhanced security protocols and hired external auditors to review its multi-signature systems, custody management, and compliance structures.
Industry analysts believe that if WazirX executes its recovery plan successfully, it could become a case study in crypto crisis management. The exchange’s willingness to operate under judicial oversight and its transparent communication with users set a new benchmark for accountability within the Indian and Southeast Asian crypto sectors.
What Comes Next for WazirX and Its Users
As the WazirX restructuring plan transitions into execution mode, the next few months will determine how efficiently the exchange restores user funds and trading functionality. WazirX is also expected to relaunch its platform with new token listings, upgraded custodial infrastructure, and an improved security framework.
The approval signals more than the end of a legal saga it marks a potential rebirth for one of India’s most influential crypto platforms. While challenges remain, the exchange now has both judicial backing and community support to move forward.
The WazirX story underscores a vital lesson for the digital asset industry: transparency and persistence can turn even the toughest crises into opportunities for reinvention.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
